KUALA LUMPUR (July 6): LB Aluminium Bhd has proposed to undertake a bonus issue of new ordinary shares on the basis of three bonus shares for every four existing shares of the company.

The group said in a bourse filing that the exercise will entail the issuance of up to 186.36 million new ordinary shares in the group.

According to LB Aluminium, the proposed bonus issue is to reward the company’s shareholders by enabling them to have greater participation in the equity of the company by increasing the number of shares held with no cash outlay required, while retaining their percentage of equity interest held.

It also aims to improve the trading liquidity and marketability of LB Aluminium shares, whilst increasing the capital base of the company; and make the bonus shares be more affordable in order to appeal to a wider group of public shareholders and investors, which may widen the company’s shareholder base, it added.

According to LB Aluminium, the theoretical adjusted reference price of the bonus shares upon completion of the proposed bonus issue is expected to be 55.85 sen.

Upon completion of the proposed bonus issue, the group’s total issued share capital will be increased to 434.85 million, from 248.49 million.

Barring any unforeseen circumstances, the proposed bonus issue is expected to be completed by the third quarter of 2021.

LB Aluminium rose four sen or 4.23% to 98.5 sen today, valuing the group at RM234.81 million.